SOUTH AFRICA / AGILITYPR.NEWS / August 13, 2026 / Prime is exactly where it was a year ago, so every rand of house price growth has landed straight on the monthly repayment. Here's what buyers are facing.

The latest research by eXp Realty South Africa has shown that the estimated average monthly cost of a home loan has increased by 4.2% over the last year, with the rise driven entirely by house price growth given that borrowing costs sit at exactly the same level as they did 12 months ago.

The analysis by eXp Realty South Africa examined the average property price, the home loan required based on a 10% deposit, the prevailing prime lending rate and the resulting monthly bond repayment, before comparing each measure to the same point last year to understand how buyer affordability has changed over the last 12 months.

The research shows that the average South African home now costs R1,766,796, having increased by 4.2% over the last year. As a result, the average 10% deposit now stands at R176,680, meaning buyers require an average home loan of R1,590,116.

Unlike many other markets, borrowing costs have offered no relief. The prime lending rate currently stands at 10.50%, exactly where it stood a year ago. Whilst the South African Reserve Bank cut the repo rate in November 2025, that reduction was reversed in May 2026 by the first rate increase since May 2023, leaving buyers facing the same cost of borrowing as they did last August.

As a result, the estimated average monthly bond repayment now stands at R15,875, up from R15,236 a year ago. This represents an increase of 4.2%, equating to an additional R640 per month, or R7,680 per year, for the average South African homebuyer.

Country Leader of eXp Realty South Africa, Andrew Thompson, commented:

"House prices have continued to grow at a healthy pace over the last year, which is a positive signal about the underlying strength of the South African market, but with interest rates unchanged there has been nothing to soften the impact on buyers.

Every rand of that price growth has flowed straight through to the monthly repayment, and with the Reserve Bank having reversed course in May, buyers are no longer able to plan around the expectation of falling rates. That naturally makes them more considered about what they buy and what they are willing to pay for it.

For sellers, this reinforces the fundamentals. Demand is clearly still there, with banks continuing to lend and approval rates holding up well, but buyers who are absorbing a higher monthly commitment will scrutinise value far more closely. Pricing a home accurately from day one, presenting it properly and marketing it effectively are what separate the homes that sell from the homes that sit."

CEO of MultiNET Home Loans, Shaun Rademeyer, added:

"What we are seeing is not necessarily a lack of appetite from the banks to lend, but rather increasing pressure on the buyer's monthly affordability. Banks remain competitive for good-quality home loan applications, but buyers are understandably becoming more price-sensitive when both property prices and their broader household expenses are increasing.

The R640 monthly increase highlighted in this research is also a good reminder that the interest rate you secure on your home loan matters. On a bond of around R1.59 million, even a relatively small difference in the rate offered by competing banks can translate into meaningful savings over the life of the loan.

This is why buyers should not look only at whether their home loan is approved. They should also look at which bank is giving them the best overall deal. Comparing multiple banks and negotiating the interest rate can make a material difference to monthly affordability.

We are also seeing buyers being more deliberate about what they can comfortably afford rather than simply focusing on the maximum amount a bank will approve. In the current environment, that is a sensible approach. A home should remain affordable not only on the day you buy it, but throughout the interest-rate cycle."

Data tables and sources

Average property price sourced from ooba Home Loans (Q2 2026).

Average deposit requirement based on a 10% deposit of the average property price, in line with the standard deposit guidance published by ooba Home Loans. Prime lending rate sourced from the South African Reserve Bank. Average home loan term sourced from ooba Home Loans.

Mortgage affordability analysis based on the average property price, a 10% deposit, the prevailing prime lending rate, a 20-year home loan term and the resulting estimated monthly bond repayment.

Full data tables can be viewed online here.

###